It’s no secret that mortgage rates have dropped and thousands of people around the country are taking advantage of the low rates; the record low gives many homeowners an opening to refinance their loans in order to save money.
According to Freddie Mac, the average rate on a 30-year fixed mortgage hit 3.29% this past week (week of 3/2/20). The sudden decline in rates is being caused by investors shifting money out of the stock market and into the U.S. Treasury. Typically, long-term mortgage rates tend to track the yields on the 10-year Treasury note, meaning they will usually fall at the same time.
The steady decline of rates has created a window of opportunity for first-time homebuyers to get into new homes, as well as allow for current homeowners to refinance to lower-rate loans. Refinancing lets homeowners lower their monthly payments, allowing them to tap into additional cash from the equity in their home.
Rates have been low for years, but every decline makes refinancing more appealing to homeowners and can greatly benefit those who plan to stay right where they are. Refinancing typically costs thousands of dollars in closing costs and fees; over time, saving a few hundred dollars each month in mortgage payments will surely add up!
It doesn’t cost anything to speak to one of our experienced lenders about whether or not refinancing would be your best interest! Please reach out if you are ready to save a little extra cash!